Government Shutdown Delays Social Security COLA Announcement

WASHINGTON, D.C. (WKOW) — Millions of Americans who rely on Social Security will have to wait longer to find out how much their benefits will rise in 2026 due to an ongoing government shutdown.

The Bureau of Labor Statistics (BLS) has halted data collection for its September Consumer Price Index (CPI) report, which is crucial for calculating the annual cost-of-living adjustment (COLA). This announcement typically occurs in mid-October, but officials say it has been delayed as Democrats and Republicans continue their political standoff.

“While the delay of a COLA announcement may not feel like a big deal, it can be significant for seniors who budget in advance,” said Alex Beene, a financial literacy instructor at the University of Tennessee at Martin. “Any delay could produce headaches for beneficiaries wanting to outline their cost of living for next year.”

In 2025, over 70 million Social Security and Supplemental Security Income (SSI) recipients received a 2.5 percent COLA. Last week, the BLS did not release its monthly jobs report, further compounding the data freeze. Economists warn that a prolonged shutdown could lead to delays in benefit applications and appeals, but monthly checks will continue to be distributed.

Kevin Thompson, CEO of 9i Capital Group, added that after the shutdown, economic data would take time to process: “Once the government reopens, we should see numbers come across the tape, but we may have to wait an additional month for new data points.”

Despite the shutdown, the Social Security Administration has confirmed that payments will continue to be issued without any changes to schedules. However, they cannot provide proof of benefits letters, and in-person services will also remain suspended until the government is operational again.

The current shutdown marks the first such event in nearly seven years, and it began on October 1, 2025, when the government’s funding lapsed. With ongoing negotiations for a resolution, beneficiaries are left in uncertainty regarding their future financial support.